Corporate News

Metro Retail Stores posts 45% jump in Q2 income

METRO RETAIL Stores Group, Inc.’s (MRSGI) net income surged 45% in the April to June period, as new stores put up in the year prior started to contribute to the company’s bottom line.

In a regulatory filing, the listed retailer posted a net income of P305.19 million, higher than the P209.18 million booked in the second quarter of 2016, following a 2% increase in revenues to P8.62 billion.

The positive performance in the second quarter lifted its first half net income by 53% to P401.12 million, while revenues picked up 3% to P16.65 billion.

“The increase in net sales was largely a result of opening a new store during the second half of 2016 and additional two new stores during the first half this year,” MRSGI said.

From 49 stores as of end June 2016, Metro Retail now has 52 stores under its network. Most of these are located in the Visayas region.

MRSGI said same-store sales growth slowed to 1% in the first half of 2017, compared to 5% last year.

MRSGI also saw an increase in rental income by 7.8% to P149.4 million because of the additional stores.

Shares in Metro Retail gained 15 centavos or 3.9% to P4 each at the Philippine stock exchange on Wednesday. -- Arra B. Francia